The retailing company submitted plans to Sheffield City Council to knock down Enterprise Inns tenancy the Cherry Tree Inn, Brincliffe Edge, and build a single-storey retail unit in its place, but was met with strong objections from locals.
A spokesperson for Co-op said: "It is our belief that a new store would greatly improve the shopping options for Sheffield residents, providing – for example – a wide selection of fresh and chilled products and in-store bakery, all within walking distance.
“A new store will also create a number of new full and part-time jobs, which will be targeted at local residents and offer a variety of skills and training programmes.”
Objections on the council’s website included that the demolition would remove a meeting place for the community and could have a detrimental impact on local shops as well as increase the risk of traffic accidents at the local crossroads.
However, a spokesperson for Enterprise Inns said: “Unfortunately, trade at our venue has fallen to such an extent that we do not believe it can continue to trade successfully as a licensed premises.
“After careful consideration, we decided to explore alternative uses for the property and have agreed a lease for the site with Co-Op. We are aware of the nomination to list the pub as an asset of community value.
"The site has been operating under a tenancy-at-will agreement for a period of time and will continue to trade until the point Co-op takes vacant possession."
If the Cherry Tree Inn is granted ACV status, the South Yorkshire community will have six months to come up with a bid or find a buyer for the pub at market value.
Sheffield & District CAMRA pub heritage officer Dave Pickersgill said: “The ACV application indicates the strength of local opinion that the pub should be allowed to develop and prosper.”
Sheffield City Council will decide on the community’s ACV application in December, The Morning Advertiser understands.